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Rubicon Associates is headed by a Chartered Financial Analyst with over 20 years of experience in the investment management industry focused on the analysis, investment and management of fixed income and preferred stock portfolios. Over the years, he has analyzed and invested in both public and... More
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  • Simon Property Goes Abroad 1 comment
    Dec 15, 2010 10:14 AM | about stocks: SPG, SKT
     Simon Properties (NYSE:SPG) has announced a proposed takeover of a British mall chain for $4.8B.  This comes after their failed bid for GGP.  I fully expect that SPG will continue to pursue acquisitions both domestically and abroad.  I still expect that SPG will follow their Prime Outlets acquisition (announced 12/09 closed 8/10) with further outlet center space.  Tanger (NYSE:SKT) would be a good fit for this approach.


    (NYSE:NYT)  The Simon Property Group, the American shopping mall operator, said on Wednesday that it was ready to pay 425 pence a share for the British mall chain Capital Shopping Centers in a deal valued at £3 billion.

    The $4.8 billion offer is 26 percent above Capital Shopping’s share price immediately prior to the offer period and 21 percent above the average price for the six preceding months.
    The transaction has kept the London deal community on edge, waiting to learn the size and prospects of the bid, which is threatened by Capital Shopping’s attempt to buy the Trafford Center in Manchester, one of Britain’s largest malls.
    Simon Property has said any offer is contingent on an end to the Trafford bid.
    “We should work together to announce a recommended offer, and would urge you to listen to calls from your shareholders — many of whom we have spoken too — opposing the Trafford Center transaction or asking you to adjourn your forthcoming E.G.M.,” Simon said, addressing Capital Shopping’s board in a filing to the London Stock Exchange.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Stocks: SPG, SKT
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  • ChalmersAbrams
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    Nice information and really outstanding post that states that Simon Property Group's investments tend to be in large metropolitan areas with very high consumer traffic and are comprised of anchor department stores alongside smaller retailers. Since Simon Property Group's holdings are substantially retail properties, it is particularly affected by the willingness of retailers to lease space in shopping centers. Simon Property Group relies on high consumer retail demand so that retailers have high demand to lease space in its malls so that it can negotiate higher rents. This is especially true with tenants of smaller retail stores in Simon Property Group's malls, many of which are on short-term leases of several months to a year, as opposed to the tenants of anchor department stores that are under leases of 5-10 years. Nice information.
    22 Jan 2011, 07:34 AM Reply Like
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